Before we explain the SAMCO bracket order in detail, you need to understand Bracket Order in brief.
So, let’s begin!
Bracket Order In SAMCO
Bracket Orders are orders that have three legs – Initial leg, Stop-loss leg, and Target leg. This order uses brackets to establish stop-loss levels of trade. Further, this practice of bracketing sets the target exits for an exchange.
In this trade order, you can place three orders at the same time
Position Initiation Order: This order is also known as Source Order.
Target Order: Source Order is another name for this order.
Stop-loss Order: This is the option to select a trailing stop loss or a static stop loss order lies with the user.
When either of the two exit orders, i.e., Target Order or Stop-loss Order, gets executed, the two orders’ remaining orders get automatically canceled by the system.
Bracket order is an advanced version of the Cover order as in the former order; you need to set the target order. Moreover, no additional charges for placing the target order is levied.
So, in simple terms, Cover order, along with target price, is known as Bracket order.
To pique your interest in this form of margin, we’d like to inform you that the two orders’ leverage is far more than what MIS & NRML products offer.
Cover orders are open for all segments, i.e., equity, currency, and commodity, with varying margins for every trading segment. Bracket orders are generally available for NSE EQ, NSE FO, and NSE CDS.
But, SAMCO Securities is the first discount broker in India that offers bracket orders for commodity derivatives in the MCX segment and others mentioned above. The option for the commodity segment is available in-call & trade only.
How to Place Bracket Order In SAMCO?
Knowing the process for placing bracket orders in SAMCO is necessary to avoid any confusion or discrepancies.
Firstly, log on to your SAMCO portal for trading & then follow the process tabulated below:
METHOD AND COMMANDS
BUY BRACKET ORDER
SELL BRACKET ORDER
Right Click a script in the Market Watch. Select Bracket Order. Buy Bracket Order.
Right Click a script in the Market Watch. Select Bracket Order. Sell Bracket Order.
Orders & Trades Menu in Tool Bar
Select Orders & Trades in the Tool Bar. Click on Bracket Order. Buy Bracket Order.
Select Orders & Trades in the Tool Bar. Click on Bracket Order. Sell Bracket Order.
Shift + F3
Shift + F4
SAMCO Bracket Order Charges
Three types of charges apply to the SAMCO bracket order. These are:
Concerning every executed order, the trader has to pay a nominal charge.
For instance, You wish to place an order of 10 shares. The order gets partially executed for four shares. This order will get charged for a corresponding stop-loss and target order.
Later, if the rest of the six shares get traded, then a corresponding stop-loss and trade order will be placed & subsequently charged.
Due to multiple orders for target and stop-loss, every order gets considered as a separate order. Each order is, then, charged on the number of executed orders.
The brokerage charges levied are the same – ₹20 or 0.02%, whichever is lower.
To avoid getting trapped in the chain of multiplying charges, place a bracket order with no disclosed quantity.
Call N Trade Charges
Call N Trade charge gets applied in the same manner.
Further, if an order gets squared off at the stipulated time by SAMCO’s RMS team, this charge will be applicable for RMS Squareoff Order.
SAMCO Bracket Order Margin
When a trader places Bracket Order with SAMCO, the margin levied is subject to a minimum margin. This minimum level gets calculated using a simple formula. The formula is:
[(Trade Price – Stop-Loss Price) * Quantity]
After making out the outline of a bracket order, it is easier to utilize them to your benefit. The best feature of the bracket order in SAMCO is that it offers a margin over and above the MIS & NRML products.
This advantage increases its applicability among the big players or the traders who have a higher risk appetite.
Placing a SAMCO bracket order is a simple three-step process. Moreover, the charges levied on SAMCO products are very transparent and nominal.
Take all the precautionary steps to avoid discrepancies, and you’ll be sailing the high waters of trading with confidence.
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